Zillow’s real estate market reports for the first quarter were released recently; the information reveals that the national value of homes has reached its largest monthly profit in almost six years. The market reports also confirm that 19 of the 30 thriving metropolitan areas that Zillow covers have already hit their lowest point financially, or will do so by the conclusion of 2012. This is hopeful news for those who are seriously considering purchasing a home for the first time, or those who have been renting for years and want to become homeowners again.
For instance, the ZHVI, or Zillow Home Value Index increased 0.5% from February to March. This was the largest increase since May of 2006, which was before home values were at their peak. The increase is also pretty significant, as it only occurred over a month’s time, and could be an indication of the favorable growth that is predicted for the housing market. Those in the real estate market will also be happy to know that Zillow anticipates that some areas will experience major gains in home value during the next 12 months.
For instance, in the Phoenix metro, the Zillow Home Value Forecast projects a profit of about 6.5% from March 2012, to March of the following year (2013). In the metropolitan area of Miami, home values will likely increase 5.6%. This is also good news for people who are planning to sell their homes in the near future. Due to the current favorable financial trends, individuals can put their homes up for sale and expect to get several offers from people who have been waiting for the right “monetary” time to become homeowners.
As a consumer, what exactly does this mean for you? Zillow’s Chief Economist Dr. Stan Humphries explains. “For people who have been waiting to time their home purchases close to the market bottom, it’s time to start shopping,” he says. While this is hopeful news, the current financial climate should also prompt potential home purchasers to make their decisions quickly, before the market changes again.
Zillow doesn’t anticipate seeing national home values steadily increasing to a rate of 0.5% every month, but it’s still safe for the consumer to assume that the rates won’t get much lower in the majority of U.S. housing markets. The Zillow Home Value Forecast projects that a national bottom line in home values will be in effect by this year’s fourth quarter.